IT Minister Ashwini Vaishnaw Meets Online Gaming Industry After RMG Ban: What This Means for India’s Gaming Future

The Indian online gaming landscape has entered a pivotal phase as Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, convened for the first time with top online gaming industry representatives following the enactment of the landmark Promotion and Regulation of Online Gaming Bill, 2025. This meeting, held on September 1, 2025, marks a significant step in navigating the post-ban environment on real-money gaming (RMG) platforms and charting a clear course for the future of skill-based e-sports and social gaming in India.

Background: The RMG Ban and the New Online Gaming Law

The Promotion and Regulation of Online Gaming Bill, 2025 was swiftly passed by both houses of Parliament and received the President’s assent in late August 2025. The legislation imposes a comprehensive ban on online real-money games — those where players stake money with the expectation of financial returns, regardless of whether outcomes are skill-based or chance-based. The government estimates that approximately 45 crore Indians were losing nearly ₹20,000 crore annually through real-money gaming, which it views as a major public health and financial risk.

Under the new law:

• Offering, operating, or facilitating online RMG is prohibited.
• Penalties for violation include imprisonment up to 3 years and fines up to ₹1 crore.
• Advertising or promoting such games can attract up to 2 years imprisonment and/or ₹50 lakh fines.
• Repeat offenders face harsher punishments, including up to 5 years in prison and fines reaching ₹2 crore.
• Importantly, players themselves are not penalized—only service providers, promoters, advertisers, and facilitators bear legal consequences.

The bill simultaneously encourages the growth of e-sports and online social games, which are exempt from the ban and will have a dedicated regulatory framework to support their development as legitimate, skill-based entertainment sectors.

The First Meeting: Industry and Government Align on Transition

Minister Ashwini Vaishnaw’s meeting brought together key stakeholders, including representatives from major gaming companies like Dream Sports, Mobile Premier League (MPL), Zupee, and industry bodies such as the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), Esports Federation of India, and others. The Ministry of Electronics and Information Technology (MeitY) officials also attended.

Key Discussion Points

• Orderly Transition: The government emphasized the importance of a smooth and transparent transition for companies affected by the ban on real-money gaming. Industry leaders briefed officials on their ongoing efforts to wind down RMG operations responsibly and to cooperate with payment intermediaries to block prohibited transactions.

• User Fund Protection: Safeguarding players’ money during this transitional phase was a top priority. Both sides discussed mechanisms to ensure users’ funds are securely returned or accounted for, preventing financial losses or fraud.

• Promotion of E-sports and Social Games: The meeting highlighted the government’s intention to foster the growth of skill-based e-sports and social gaming in India. These segments are considered promising for job creation, youth engagement, and positioning India as a global gaming hub.

• Addressing Offshore Betting Concerns: Industry federations raised ongoing worries about offshore betting and gambling platforms that continue to operate and advertise aggressively, circumventing domestic regulations. Collaborative efforts to curb these illegal operations were discussed.

Industry Compliance So Far

Several prominent gaming platforms have already suspended their real-money gaming offerings in compliance with the Act. This proactive response signals the industry’s readiness to adapt to the new legal environment, albeit with concerns about the impact on revenues and user engagement.

What This Means for Gamers and the Industry

For millions of gamers in India, this regulatory shift will reshape their online gaming experiences. While real-money gaming options are now off the table, the government’s focus on e-sports and social games opens up new, legal avenues for competitive and recreational gaming.

Benefits

• Legal Clarity and User Protection: The Act provides clear rules, reducing risks of fraud and unregulated betting activities. Players can engage with confidence in legal, skill-based games.
• Growth of E-sports: With government backing and a formal regulatory framework, e-sports could see significant investment, infrastructure development, and international recognition.
• Reduced Financial Risk: Eliminating real-money gambling platforms may lower the incidence of gaming-related financial losses and addiction.

Challenges

• Industry Adaptation: Gaming companies must pivot their business models, which may affect revenues and employment in the short term.

• Offshore Platforms: Enforcement against foreign operators remains a challenge, requiring ongoing cooperation between regulators, payment gateways, and digital platforms.

• User Transition: Players accustomed to real-money games will need education and incentives to transition towards social and e-sports formats.

The Road Ahead: Building a Sustainable Gaming Ecosystem

Minister Vaishnaw’s engagement with the industry signals a collaborative approach to policymaking. The government appears keen to balance regulation with innovation, ensuring India’s online gaming sector grows responsibly.

To facilitate this:

• Regulatory Authority: The Act establishes a central authority to oversee e-sports and social gaming, offering legal recognition and support.

• Stakeholder Dialogue: Continuous consultation with industry groups will help refine guidelines and address emerging issues.

• Technology and Payment Cooperation: Working with banks, fintech firms, and payment intermediaries will be critical to enforce the ban and protect user interests.

• Public Awareness: Campaigns to educate users about safe gaming and the distinctions between banned RMG and permitted games will aid compliance.

Conclusion

Ashwini Vaishnaw’s first meeting with online gaming stakeholders after the RMG ban is a landmark moment reflecting India’s evolving digital entertainment landscape. It underscores a commitment to safeguard citizens from the harms of real-money gambling while nurturing the promising fields of e-sports and social gaming. As the industry navigates this transition, the focus on orderly change, user protection, and regulatory clarity offers a hopeful outlook for India’s gaming future.

For gamers and industry watchers, the coming months will be crucial in shaping how India’s vibrant gaming ecosystem adapts, innovates, and thrives within the new legal framework.